Mortgage Broker Niches Explained: 3 Rules and 8 Ways to Define Yours
Sam Panetta shares the three filters he would apply if he had to pick a niche today, then walks through the 8 ways a broker can shape one into an ideal client.
Choosing a niche comes down to three filters: passion, competitive edge and marketability. Then you shape it using 8 different lenses, from demographics to interests.
1) Filter 1: Passion
If your business succeeds, you’ll have the same conversations over and over again. Being deeply interested in the subject and the people you work with is a long-term, sustainable advantage.
- You’ll repeat these conversations daily.
- Enjoying the work gives you longevity.
- Passion keeps your energy up.
2) Filter 2: A real competitive edge
Pick a space where you can compete with other brokers and stand a chance of winning. If you’ve never written an SMSF loan, it’s hard to compete with brokers who have written hundreds. If you have a real estate background and your own portfolio, you have a natural edge with property investors.
- Compete where you can win.
- Experience is an edge.
- Your own story can be the advantage.
3) Filter 3: Marketability
Without the ability to get the attention of your ideal client, it’s not really a niche. You need to get in front of them and bring them into your world to stand a chance of winning them as clients.
- If you can’t reach them, it isn’t a niche.
- Attention comes before clients.
4) See clients the way they see themselves
The key to marketability is seeing your ideal client the way they see themselves, not the way you see them. A first home buyer identifies as a first home buyer. A high income earner usually doesn’t identify that way, but a surgeon identifies as a surgeon and a judge as a judge.
- “First home buyer” lands.
- “High income earner” doesn’t.
- “Surgeon” or “judge” does.
5) Ways 1 and 2: Demographics and borrower type
Demographics covers the age, sex and status of your ideal client. Borrower type goes beyond individuals: companies, trusts and SMSFs are all borrowers too.
- Demographics: age, sex, status.
- Borrower type: individuals, companies, trusts, SMSFs.
6) Ways 3 and 4: Geography and deal type
You can lean into half a dozen suburbs, a city, a state or all of Australia. Or shape the niche around a type of deal, such as first home buyer, SMSF or business lending.
- Geography: suburbs, city, state or national.
- Deal type: first home buyer, SMSF, business lending.
7) Ways 5 and 6: Employment type and industry
Employment type could be business owners, Sam’s favourite, or contractors, full-time employees and commission-based earners. Industry could be nurses, trades, mining or legal.
- Business owners vs employees is a big distinction.
- Any industry can be an edge.
8) Ways 7 and 8: Security type and interests
Security type could be residential, commercial, asset finance, farmland, or land and construction. Interests go further: a supercar asset finance broker would expect clients who love supercars. Languages, cultures and religions can also define a niche.
- Security: residential to farmland.
- Interests: supercars, languages, cultures, religions.
9) Put it together
Apply the three filters, then combine the eight ways into a picture of one ideal client.
- Love what you do.
- Compete where you can win.
- Make sure you can market to them.
The simplest version of the playbook
Choose a niche you’re passionate about, where you have a real edge and can reach clients the way they see themselves. Then use the eight ways to shape it into one ideal client.
